HOME INSPECTIONSHOME INSPECTIONSWhat really matters ?What really matters ?

A presentation for real estate professionalsBrought to you by

The National Association of Certified Home Inspectors

Chicagoland Chapter

www.NACHIChicago.org

www.NACHI.org

America’s Elite Home Inspection Organization

Contents of presentationContents of presentation The role of your home inspector.The role of your home inspector. How we can assist you.How we can assist you. Types of inspections.Types of inspections. Our standards of practice.Our standards of practice. What are we looking at ? What are we looking at ? What are our limitations ?What are our limitations ? Our code of ethics.Our code of ethics. What do we often find ?What do we often find ? What really matters to your clients ?What really matters to your clients ? All about NACHI.All about NACHI. All about your NACHI inspector.All about your NACHI inspector. For further informationFor further information

The role of your Home InspectorThe role of your Home Inspector To provide an unbiased, written report To provide an unbiased, written report

based on the condition of the home.based on the condition of the home. To report the condition of the homes To report the condition of the homes

structure, roof and major systems.structure, roof and major systems. To advise the client as to areas that are, To advise the client as to areas that are,

unsafe, require immediate repairs or unsafe, require immediate repairs or maintenance and sensible safety maintenance and sensible safety related updates.related updates.

To help you help the client to make To help you help the client to make informed decisions about the homeinformed decisions about the home

Different Levels of DefectsDifferent Levels of Defects Watch List: An item that is not Watch List: An item that is not

currently a problem, but has a high currently a problem, but has a high likelihood of failing in the near likelihood of failing in the near future.future.

Examples:Examples:– Older RoofOlder Roof– Older Water Heater or FurnaceOlder Water Heater or Furnace– Recommendations for regular Recommendations for regular

maintenance like window caulkingmaintenance like window caulking

Different Levels of DefectsDifferent Levels of Defects Repair and/or Replace: An item Repair and/or Replace: An item

that is defective and should be that is defective and should be repaired in order to guard against repaired in order to guard against more damage.more damage.

Examples:Examples:– Roof FlashingRoof Flashing– Leaky PipesLeaky Pipes– Damaged Electrical OutletsDamaged Electrical Outlets

Different Levels of DefectsDifferent Levels of Defects Significantly Deficient: Defined in Significantly Deficient: Defined in

State Law as “Any system of State Law as “Any system of component that is unsafe of not component that is unsafe of not functioning”.functioning”.

““Not Functioning” is easy. It does Not Functioning” is easy. It does not work, i.e., the furnace does not not work, i.e., the furnace does not work.work.

Unsafe is defined against current Unsafe is defined against current National Standards, not local codes.National Standards, not local codes.

Different Levels of DefectsDifferent Levels of Defects Unsafe: Defined in State Law as “Unsafe: Defined in State Law as “A A

condition in a system or condition in a system or component that is a significant risk component that is a significant risk of personal injury or property of personal injury or property damage during normal, day-to-day damage during normal, day-to-day use. The risk may be due to use. The risk may be due to damage, deterioration, improper damage, deterioration, improper installation or a installation or a change in change in accepted residential construction accepted residential construction standards. standards.

Different Levels of DefectsDifferent Levels of Defects Being in accord with local building Being in accord with local building

codes is not the same as being safe.codes is not the same as being safe. Codes are a Codes are a minimumminimum standard of standard of

required work.required work. Codes vary from town to town. Codes vary from town to town.

National standards do not.National standards do not. A house can be perfectly compliant A house can be perfectly compliant

with code, but be perfectly unsafe.with code, but be perfectly unsafe. Inspectors are required, by law, to Inspectors are required, by law, to

call out all “Significantly Deficient” call out all “Significantly Deficient” items.items.

What can we do What can we do for you ?you ?

We promise to act professionally towards We promise to act professionally towards you and the client at all times.you and the client at all times.

We undertake to deliver a comprehensive We undertake to deliver a comprehensive and unbiased report to your client in a and unbiased report to your client in a timely manner.timely manner.

We are happy to discuss the findings of our We are happy to discuss the findings of our report with you at your clients request.report with you at your clients request.

We guarantee to perform the inspection We guarantee to perform the inspection exeeding with industry standards and in full exeeding with industry standards and in full compliance with any state requirements.compliance with any state requirements.

Professional Service + An Informed Buyer

= A quick closing

Types of inspections of inspectionsPre-listing inspections:

Give the seller the opportunity to correct defects prior to listing,

provide a more accurate disclosure, take nasty surprises out of the

equation and speed up the closing.

Buyers inspections:

Give the potential purchaser and their Realtor the tools needed to make an informed decision about

the condition of the home and reduce liabilities for all involved.

We also offer additional services such as Mold, Water Quality and Radon testing.

Please call us for more details

Types of inspections of inspectionsNew Construction Inspection:

Even new houses have problems. With the new paradigm of tear-

down builders and large developments, inspection of new

construction is crucial.

Phased Construction Inspection:

Building your own custom home? Why not have an expert on your side? A home inspector can be

your eyes and ears on-site.

Types of inspections of inspectionsRemodeling Consultation:

Home inspectors are experts on all the newest techniques and

materials. If you are planning a remodel, why not have an inspector

help you decide the most cost effective way to do it?

Renter’s Security Deposit Inspection:

Have a certified home inspector document the condition of your

rental property before you rent it. Avoid the hassle of security

deposit disputes with renters.

Our Standards of PracticeOur Standards of Practice We are required to meet standards of We are required to meet standards of

practice as laid out by our trade practice as laid out by our trade organization or state licensure.organization or state licensure.

We report on the materials and methods We report on the materials and methods used in the construction of dwellings and used in the construction of dwellings and their systems and report on their overall their systems and report on their overall condition based on a visual and non-condition based on a visual and non-invasive inspection.invasive inspection.

For more details about our minimum For more details about our minimum standards of practice, please visit:standards of practice, please visit:

http://www.nachi.org/sop.htm

What are we looking at ?

Roof system & coverings.

Exterior & lot. Basement,

Foundation, Crawlspace & Structure.

Heating systems. Cooling systems..

Plumbing fittings & fixtures.

Electrical supply & distribution.

Fireplace & chimney.

Attic & Insulation. Doors, Windows

& Interior.& Interior.

The report will contain comments on the condition of the following systems

For more information on the above please visit: http://www.nachi.org/sop.htm

What are our limitations ? A home inspection is A home inspection is NOTNOT a warranty and a warranty and

implies no guarantee of the future condition implies no guarantee of the future condition of the home or its systems.of the home or its systems.

The inspector can only report on systems The inspector can only report on systems that they can see based on reasonable that they can see based on reasonable access.access.

The report should only be considered The report should only be considered ““a a snapshot in time”snapshot in time” and can only represent and can only represent conditions viewed on the day and time of conditions viewed on the day and time of the inspection.the inspection.

An inspection is not technically exhaustive.An inspection is not technically exhaustive. When necessary the inspector will defer to When necessary the inspector will defer to

a specialist contractor or other professional a specialist contractor or other professional for further evaluation.for further evaluation.

What do we often find ?What do we often find ?

Perhaps the most Perhaps the most commonly reported commonly reported

problem is with problem is with unsafe wiring issues, unsafe wiring issues,

in this case the in this case the exposed live wires exposed live wires

could easily could easily electrocute the electrocute the

occupants,occupants,

Another common Another common electrical problem electrical problem

with an ungrounded with an ungrounded outlet having been outlet having been placed inside the placed inside the

shower area.shower area.

SHOCKING !!SHOCKING !!

Obviously a little Obviously a little extreme, but the extreme, but the

home inspector will home inspector will frequently find frequently find

unknown problems unknown problems with the roof and with the roof and roof coverings.roof coverings.

But weedwacking But weedwacking the roof ?the roof ?

All pictures courtesy of various NACHI members copyright NACHI 2000-2004

What do we often find ?What do we often find ?

Unfortunately not all Unfortunately not all chimney problems chimney problems

are this easy to are this easy to spot. The home spot. The home

inspector is trained inspector is trained to recognize visual to recognize visual

deficiencies in many deficiencies in many different systems.different systems.

Inspectors will often Inspectors will often see materials that see materials that

have been known to have been known to present problems, in present problems, in this case a type of this case a type of

siding that was siding that was subject to a class subject to a class

action suit.action suit.

Would most people Would most people realize that this realize that this

water heater is in a water heater is in a dangerous dangerous

condition, and as condition, and as well as the fire issue well as the fire issue

is not venting is not venting properly and could properly and could kill the occupants.kill the occupants.

All pictures courtesy of various NACHI members copyright NACHI 2000-2004

What really matters to your What really matters to your clients ?clients ?

We provide an easy to understand inspection We provide an easy to understand inspection report, complete with color photos and diagrams, report, complete with color photos and diagrams, pointing out to the potential buyer the overall pointing out to the potential buyer the overall condition of the home and the areas that may need condition of the home and the areas that may need repair or maintenance.repair or maintenance.

We will educate the buyer, by giving them an We will educate the buyer, by giving them an impartial evaluation of the visible structure and impartial evaluation of the visible structure and systems.systems.

We are not concerned with the cosmetic condition We are not concerned with the cosmetic condition of the home unless that is indicative of deeper lying of the home unless that is indicative of deeper lying problemsproblems

We are not here to We are not here to “kill the deal”“kill the deal” but we have all but we have all inspected a few homes that have committed inspected a few homes that have committed suicide in front of us !!suicide in front of us !!

What really matters ?The following article was written by NACHI Founder Nick

Gromicko to help educate consumers about the home inspection process.

Buying a home? The process can be stressful. A home inspection is supposed to give you peace of mind, but often has the opposite effect.

You will be asked to absorb a lot of information in a short time. This often includes a written report, checklist, photographs, environmental reports, and what the inspector himself says during the inspection. All this combined with the seller's disclosure and what you notice yourself makes the experience even more overwhelming.

What should you do? Relax. Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to know about. However, the issues that really matter will fall into four categories:

1. Major defects.  An example of this would be a structural failure.

2. Things that lead to major defects.  A small roof-flashing leak, for example.

3. Things that may hinder your ability to finance, legally occupy, or insure the home.

4. Safety hazards, such as an exposed, live buss bar at the electric panel.

Anything in these categories should be addressed. Often a serious problem can be corrected inexpensively to protect both life and property (especially in categories 2 and 4). Most sellers are honest and are often surprised to learn of defects uncovered during an inspection. Realize that sellers are under no obligation to repair everything mentioned in the report. No home is perfect. Keep things in perspective. Don't kill your deal over things that don't matter. It is inappropriate to demand that a seller address deferred maintenance, conditions already listed on the seller's disclosure, or nit-picky items.

Our code of ethics (abridged) The Inspector shall be fair, honest, impartial, The Inspector shall be fair, honest, impartial,

and act in good faith in dealing with the public.and act in good faith in dealing with the public. The Inspector will have no undisclosed conflict The Inspector will have no undisclosed conflict

of interest with the client, nor will the Inspector of interest with the client, nor will the Inspector accept or offer any undisclosed commissions, accept or offer any undisclosed commissions, rebates, profits, or other benefitrebates, profits, or other benefit

The inspector shall not perform or offer to The inspector shall not perform or offer to perform, for an additional fee, any repairs or perform, for an additional fee, any repairs or associated services to structure on which the associated services to structure on which the inspector or inspector's company has prepared inspector or inspector's company has prepared a home inspection report, for a period of 12 a home inspection report, for a period of 12 monthsmonths

For more details about your inspectors ethical For more details about your inspectors ethical obligations please visit: obligations please visit: www.nachi.org/code_of_ethics.htmwww.nachi.org/code_of_ethics.htm

All about NACHIAll about NACHIThe National Association ofThe National Association ofCertified Home InspectorsCertified Home Inspectors

Home of Americas elite home Home of Americas elite home inspectors.inspectors.

Over 10,000 Certified Home Over 10,000 Certified Home Inspectors across the US and Canada.Inspectors across the US and Canada.

Our members meet the highest Our members meet the highest standards of practice, ethics and standards of practice, ethics and

continuing education.continuing education. The best inspectors can be found at The best inspectors can be found at

www.findaninspector.usFor more information on NACHI go to

www.nachi.org